Open Source

Chinese telecommunications company Huawei has for some time now expanded its horizons beyond the physical manufacturing of networking equipment. The firm’s operational (and consulting) services have spread its ‘intelligence’ to the point...

When a company decides to embrace open-source software development, releasing the code under a suitable license is only the tip of the iceberg. The real challenge that companies face is learning how to attract and collaborate with contributors....

Worldwide, there's a growing appreciation for the many benefits of the Open Source way. Clearly, being truly Open is a frame of mind that can apply to just about anything in life -- including the development and nurture of a progressive company...

OpenMAMA, the project developed to allow financial services firms to move more freely between market data technology and content vendors, today announces its re-launch boasting a new advisory group, increased vendor coverage and, for the first...

Since I can’t sprinkle Wikipedia on my porridge, clothe myself with an open-source pattern for jeans, or access the internet by data alone, I’m puzzled about Paul Mason’s postcapitalist proto-utopia (Welcome to a new way of living, Review,...

OSCON 2015 is special for container enthusiasts. On day 2 of the event, the open source community is celebrating the launch of Kubernetes 1.0, an orchestration engine for containers that just turned one last month.

China's Huawei used this week's OSCON event in Portland to announce the open source availability of Astro, a project that combines the analytics of Apache Spark with the large-scale data processing of Apache HBase and the business accessibility of...

From an investment research perspective, the term "open source software" refers primarily to a set of terms and conditions associated with the software's license. There are dozens of such licenses but those designated Open Source Initiative (OSI)-compliant meet a set of 10 characteristics outlined on the group's web site that capsulize the open source philosophy.

The term "open source" derives from the fact that the software's source code is at least available and in fact ususally distributed with the executable code (the normal way of distributing software). Per one of the typical terms and conditions in an OSI-compliant license, the software can be (1.) "freely" changed and (2.) somewhat freely redistributed (depending on which open source license is used).

Open source software is not the same as free software and the term free software does not necessarily mean available "at no charge." There is free software that is not open source and vice versa. See the Free Software Foundation (FSF) web site (fsf.org) for more details. This issue is less relevant to investment research because very few public companies embrace the FSF philosophy.

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Open Source Drivers

Trust in Open Source Reliability Among Enterprise Sector

Because the source code for open source software is transparent and built in part by volunteers, enterprise IT planners have been hesitant to use it fearing security issues and a lack of support if the software experiences problems. Thus, companies with large IT departments and in-house developers that can fix internal problems on their own are generally the early adopters of open-source. Companies like Red Hat (RHT) and Novell (NOVL), because they guarantee support for their Linux solutions, are slowly but surely convincing wary enterprises to take the open source plunge. Trust in the security and stability of open source software continues to improve.

Mistrust of Proprietary Vendors

Dealing with proprietary software vendors can expose users to "vendor lock-in", where all their infrastructure is dependent on that vendor. The vendor can then exploit this condition to increase their profits, or the vendor might simply stop supporting a particular piece of infrastructure without leaving any clear migration plan. Open-source software provides some cushion against this, because in the worst case a company can hire people to maintain the software or to assist in migration (without compromising any intellectual property restrictions on a proprietary vendor's software). This cushion should not be overstated, though; it's expensive to hire people to maintain software like that and the company is seldom able to defray these costs by reselling the work. Small companies can ill afford this expense; large companies may have enough pull with the software vendor to begin with that they don't get in such a situation.

Some companies may maintain a stake in open-source software infrastructure just to have a better negotiating position with a proprietary software vendor.

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